Telangana launches homestay policy to boost tourism

HYDERABAD: The Telangana tourism department has launched a homestay policy to expand accommodation options in line with tourist preferences. While homestays are already operational in several parts of the country, the state plans to formally roll out the model to offer visitors a mix of local culture, traditions and cuisine.
Homestays are positioned as a lower cost alternative to hotels, offering a secure, home like environment. Tourists will be encouraged to experience regional food and everyday cultural practices as part of their stay.
Focus on heritage cities and peak season demand
The department plans to promote homestays in cities of historical and cultural importance such as Hyderabad and Warangal. Officials said hotel room shortages are common during peak tourist seasons, and homestays are expected to bridge this gap while providing an affordable option for travellers seeking personalised stays.
The Union tourism ministry has issued specific guidelines with a strong emphasis on tourist safety.
Registration, norms and incentives
Individuals planning to operate homestays must register in line with government norms. Mandatory documents include proof of ownership, identity proof and Goods and Services Tax registration. Permissions will be issued within 30 days of application.
Homestays will be categorised based on the number of rooms and quality of facilities. Typically, approval will be granted for up to six rooms. Owners or their family members must reside on the same premises.
To encourage the sector, the government is offering incentives, including financial assistance under the Pradhan Mantri Mudra Yojana. Homestays will continue to be treated as residential properties, with electricity, water charges and property tax levied at residential rates.
Operators must maintain guest records as part of safety protocols, officials said.

